State Takes Steps Toward Improving Online Transparency of Government Expenditures; WISPIRG Advocates for Further Measures to Bring Transparency Up to Speed

In 2007, legislation was signed into law that required the Department of Commerce to provide detailed information about each agency's economic development subsidies programs, including awards made, on its website. WISPIRG applauds the Legislature for recognizing that taxpayers deserve access to information about how subsidy dollars are spent. Access to this information makes it possible for legislators, watchdog groups, and citizens to evaluate whether subsidized companies are living up to their promises.

However, making information about the success of economic development subsidies programs available to the public is only the first step. WISPIRG is calling on the Legislature to pass "clawback" legislation, which would require an agency granting a subsidy to enter into an agreement with the recipient outlining measurable goals for the subsidy. This legislation would require the agency to recoup the subsidy in the event that the recipient fails to make a capital investment or follow through on its job creation promises.

Taxpayers want to know they are getting the most bang for their buck, especially in this economy. When tax dollars go to companies in the form of economic development subsidies, it is important to ensure that those companies are meeting the terms of their agreements with the State. Thorough disclosure of subsidies is necessary for taxpayers to evaluate whether subsidized companies are living up to their promises and whether subsidies are effective in promoting economic development that positively impacts communities.

In Wisconsin, the Department of Commerce is required to publish an annual report to provide taxpayers with information about the outcome of subsidy agreements, but the report is missing key information about job creation. WISPIRG is calling for the Department of Commerce to provide more thorough information about the outcome of subsidy agreements and for the Legislature to pass "claw back" legislation, which would require an agency granting a subsidy to enter into an agreement with the recipient outlining measurable goals for the subsidy. This legislation would require the agency to recoup the subsidy in the event that the recipient fails to make a capital investment or follow through on its job creation promises.

Government is most likely to work in the best interest of citizens when the legislative process is transparent. When citizens have access to information regarding government expenditures and the allocation of their tax dollars, they are in a better position to vote in their best interests and put pressure on their representatives to act in their best interests.

Wisconsin has taken steps in recent years to increase public access to information regarding state procurement contracts and economic development programs, but these were only first steps toward making Wisconsin’s legislative process more transparent. WISPIRG is advocating for legislation, implemented in other states, which would create a searchable online database of all government expenditures, so that taxpayers have easy access to information regarding how their tax dollars are being spent.